Saudi Arabia Woos Hong Kong Investors to its Stock Market

Saudi Arabia Woos Hong Kong Investors to its Stock Market

Saudi Arabia is trying to attract Hong Kong institutional investors to its stock market, the largest in the Middle East as the country loosens restrictions on foreign direct investment. A roadshow was held in Hong Kong recently by Vice-Chairman of Capital Market Authority which oversees the stock market and other senior government officials and executives from Saudi companies.

In 2015, Saudi Arabia open its stock market to allow limited ownership by foreign institutional investors. Ever since late last year, the rules have been revamped and restrictions have been eased such as a reduction of value of assets required for Qualified Foreign Investors (QFI) from US$ 5 billion to US$ 1 billion and allowing them to own as much as 10% of a traded company, up from 5%.